Have been doing some thinking about ground up development of small-to-medium size apartment buildings lately. We’ve not built ground-up before, but we’re getting closer and closer and I believe ground-up is likely to be a big part of our business mix in the coming years. Here’s how I think about it: Assuming reasonable planning
My folks are planning to begin spending ~6 months per year in LA. I’ve therefore been looking into suitable rentals and condos. My parents are among the oldest Boomers. Like many of their generation, they’ve accumulated a decent amount of wealth through hard work and frugal living. Now, they want to spend time in LA.
“Do you have anything in your portfolio that you’re considering selling?” I get that question at the end of almost every conversation I have with a broker. And it makes sense, right? You don’t get business without asking for it. But the answer is, most assuredly, “No, and I probably won’t sell ever again.” Once
Someone asked me today whether there are any deals to do right now. My response, as always, was a question: “What are your return requirements?” If you need to get to an 8% / year unlevered yield, then I can probably put out $3-5MM / year (eg not very much). If you’re willing to live
“Hey Jacob. What did we get for the last 2/1 we rented at X?” I think I ask that question of Jacob, who runs our management business, 4-5 times per week. Why? Because we’re constantly recycling the market information we glean from leasing back into our acquisitions underwriting. The go/no go decision on each deal is